Transfer of property from parent to child.

The transfer of property from a parent to a child can be accomplished in several ways, with the most commonly used methods being donation, sale, and inheritance. Each of these methods has its specificities, legal, and tax implications.

1. Donation

   • Procedure: A parent can donate the property to the child through a notarial act. This is the most commonly used method when the transfer of property is made without payment.
   • Fees: When donating property between relatives in a direct line (e.g., from parent to child), a minimal notarial fee and a state registration fee are paid. No gift tax is owed when the donation is between relatives in a direct line.
   • Advantages: This procedure is relatively simple and quick, and it does not involve tax payments.
   • Disadvantages: Once donated, the property becomes the child's sole ownership, and the parent loses all rights to it.

2. Sale

   • Procedure: A parent can sell the property to the child. For this purpose, a sales contract in notarial form is concluded.
   • Fees: Depending on the value of the property, a notarial fee, a local tax for the transfer of the property (which varies from 2% to 3% depending on the locality), and a registration fee are paid. If the property is sold for a price lower than the market value, there may be issues with the tax authorities.
   • Advantages: It is possible to agree on retaining certain rights for the parent, such as the right to use the property.
   • Disadvantages: There are costs for notarial and state fees, as well as potential tax implications.

3. Inheritance

   • Procedure: A parent can leave the property to the child through a will. The will is prepared and stored with a notary or personally, but it must be authenticated.
   • Fees: There are minimal costs associated with drafting a will. After the parent's death, the heirs will have to pay a fee for registering the inheritance rights on the property.
   • Advantages: The parent retains ownership and usage rights until the end of their life.
   • Disadvantages: The property is transferred to the child only after the parent's death, which may create uncertainty for the child.

Important Points:

• Consent of the Other Parent: If the child is a minor, the transfer of property usually requires the consent of the other parent and approval from the district court.
• Notarial Actions: All these actions require a visit to a notary and the preparation of the relevant documents.
• The choice of the appropriate method for transferring property depends on the specific circumstances and preferences of the family. Consulting with a notary or lawyer is recommended before taking any action.